Transferring of Pensions - not sure what to do?

[kerbs]

Hi there
I'd appreciate some advice on what to do with my pension. I am 32 years old and left my former employer last year. In the 5/6 years I was with them I accumulated a pension of 42,295. That is now still sitting in their fund with the following split: 50% Irish Life Cash & 50% Irish Life Global Equity Fund.
My new emplyer also has a pension which I am contributing to (they contribute 5%).
The problem is I cannot ammend the old funds with my previous employer- they will stay like that till I can get access to them at 50 unless I transfer them to my new employer.
I am not sure what to do? I would like to ammend the current split but at the same time dont think I will be with my current emplyer longer then 2/3 years so is it worth the hassle - I will then just be moving it on again?
At this stage I should also add that I have contacted in the past (without pension though) and I would see myself going down that route again (but if I did it long term I would try and set up a pension)
The guy in Mercer mentioned Retirement Bonds?? But am not sure if that is the right option-- Advice appreciated!!

Thanks

 

[Fanny]

Re: Transferring of Pensions - not sure what to do??

Hi Kerbs,

similar situation here, I have a frozen Mercer Irish Life pension with a previous employer, and have set up a PRSA with the next company (also Irish Life, same fund, different pension, different charges). One of the reasons for setting this up was the promise of flexibility because I knew I would probably go down the road of self-employment some day in the future. Even the Mercer Irish Life pension sounded flexible at the time but I was surprised that my new company was with another provider, and as I knew I'd only stay 2/3 years I opted for a flexible "low cost" PRSA instead. At the moment I consider setting up yet another pension with Quinn Life, because I cannot roll over SSIA into the frozen Mercer pension and the PRSA seems rather expensive with a charge of 5% on lump sums. Alot of people say it's not a disadvantage to have frozen pensions but if I need to hire an accountant because of frequent job changes and new government programmes and a lack of compatibility that does not exactly help to promote the ease of private pensions, does it?

Fanny

 

[ClubMan]

The guy in Mercer mentioned Retirement Bonds?? But am not sure if that is the right option-- Advice appreciated!!

In what capacity are Mercer acting here? As independent, professional advisors to you alone or in some other capacity in which they may have other vested interests?

 

[Guest126]

Transfer to your new company pension would make sense.

It would mean that, even if you leave the new employer with less than two years of service you would be able to take the company's contributions from your new pension plan (if the company is contributing to your new pension plan that is!).